IPO not a magic solution for ailing discoms, says Tata Power CEO

Tata Power CEO Praveer Sinha has said that public listing is not a cure-all for state-owned power distribution companies (discoms) struggling with losses. Speaking at the BNEF Summit 2026, Sinha stressed that discoms need a solid five-to-10-year business strategy before approaching retail investors.

"First of all we need to understand why you need to do an IPO," Sinha said. "You have to set it right by bringing in better management, better technology, better equipment, better reliability. Not by going and saying that I have done an IPO and everything will be hunky dory thereafter." He warned that listing without fixing fundamental flaws risks retail investors' money, asking why anyone would invest in a company with no clarity on management or future.

Sinha noted a huge performance gap between private and government discoms, though he acknowledged some state-run discoms are performing well and offer lessons. On the broader energy market, he highlighted how renewables now operate on a "must run basis," changing the role of coal and gas plants.